Correlation Between VinFast Auto and Ocuphire Pharma
Can any of the company-specific risk be diversified away by investing in both VinFast Auto and Ocuphire Pharma at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining VinFast Auto and Ocuphire Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VinFast Auto Ltd and Ocuphire Pharma, you can compare the effects of market volatilities on VinFast Auto and Ocuphire Pharma and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in VinFast Auto with a short position of Ocuphire Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and Ocuphire Pharma.
Diversification Opportunities for VinFast Auto and Ocuphire Pharma
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VinFast and Ocuphire is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and Ocuphire Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocuphire Pharma and VinFast Auto is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on VinFast Auto Ltd are associated (or correlated) with Ocuphire Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocuphire Pharma has no effect on the direction of VinFast Auto i.e., VinFast Auto and Ocuphire Pharma go up and down completely randomly.
Pair Corralation between VinFast Auto and Ocuphire Pharma
Considering the 90-day investment horizon VinFast Auto Ltd is expected to generate 0.39 times more return on investment than Ocuphire Pharma. However, VinFast Auto Ltd is 2.55 times less risky than Ocuphire Pharma. It trades about -0.1 of its potential returns per unit of risk. Ocuphire Pharma is currently generating about -0.58 per unit of risk. If you would invest 419.00 in VinFast Auto Ltd on August 25, 2024 and sell it today you would lose (26.00) from holding VinFast Auto Ltd or give up 6.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 13.04% |
| Values | Daily Returns |
VinFast Auto Ltd vs. Ocuphire Pharma
Performance |
| Timeline |
| VinFast Auto |
| Ocuphire Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VinFast Auto and Ocuphire Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinFast Auto and Ocuphire Pharma
The main advantage of trading using opposite VinFast Auto and Ocuphire Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, Ocuphire Pharma can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ocuphire Pharma will offset losses from the drop in Ocuphire Pharma's long position.| VinFast Auto vs. Asbury Automotive Group | VinFast Auto vs. Lululemon Athletica | VinFast Auto vs. Red Branch Technologies | VinFast Auto vs. Tradeweb Markets |
| Ocuphire Pharma vs. Reviva Pharmaceuticals Holdings | Ocuphire Pharma vs. Protalix Biotherapeutics | Ocuphire Pharma vs. Eyepoint Pharmaceuticals | Ocuphire Pharma vs. Sellas Life Sciences |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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